Alony-Hetz Properties and Investments Ltd.
Income-Producing Real Estate
Chairman of the Board
Alony-Hetz Properties and Investments Ltd.
View ProfileNathan Hetz
Aviram Wertheim Chairman of the Board
Moti Barzilay EVP Business Development
Oren Frenkel CFO
Hanan Feldmus Legal Counsel & Company Secretary
About Alony-Hetz Properties and Investments Ltd.
Alony-Hetz is one of Israel’s leading income-producing real estate companies. The company focuses on investments in income-producing properties in western developed countries through holdings that give it substantial influence on local real estate companies. The group invests in offices and commercial centers, while seeking geographical diversity and a broad base of tenants.
The company implements a cautious investment policy, spread across five western countries, currencies and economies, maintaining low leverage and high liquidity, which has led to consistent, stable growth in FFO and impressive growth in net profit in recent years. The company is traded on the Tel Aviv Stock Exchange (TASE) with NIS 6 billion market value as of December 2017, and NIS 5.4 billion equity by December 2017. Net profit for 2017 was NIS 599 million. The leverage rate in December 2017 was 36%, with 88% of investments not subject to liens. The company has distributed a dividend every quarter for over 20 years and declares the annual dividend ahead of time that it intends to distribute every quarter.
Diversification Growth-Focused Strategy
The Group’s operations (assuming full consolidation of Amot, CARR, PSP and buildings in Boston) include 275 assets, 4,000 tenants, and 2.5 million-sq.m. of leasable surface space.
Details of Activities
Alony-Hetz currently operates in five countries. Activities are implemented through substantial holdings in the following companies:
CARR PROPERTIES – USA (Alony-Hetz holds 50.6%) CARR invests and develops (including management and maintenance) office buildings in the Washington DC metropolitan area with focus on trophy buildings. The second largest shareholders owner is JP Morgan. As of December 2017 CARR holds 16 office buildings with a leasable area of 297,000 sq.m., and worth $2 billion. The leasing rate in December 2017 was 93%. CARR owns 5 office buildings in stages of construction with aconstruction budget of $1.5 billion, of which $0.7 billion were invested till December 2017.
Amot – Israel (Alony-Hetz holds 59.6%)
Amot, an Israeli public company, is Alony-Hetz’s investment arm in Israel and holds, leases and develops income-producing real estate assets mainly in central Israel (88% of properties are in the Tel Aviv Metropolitan area). Amot owns 99 buildings with 783,000-sq.m. leased space worth NIS 9.5 billion, with an impressive 97.4% occupancy rate. As of December 2017, Amot is also in the construction stage of three properties with leasable area totaling 123,000-sq.m.
PSP – Switzerland (Alony-Hetz holds 12.2%)
PSP, is the second largest real-estate company traded in the Zurich Stock Exchange and one of the largest real estate companies in Europe. PSP’s equity in December 2017 was 4.0 billion Swiss Francs and it owned 157 income-producing Swiss properties covering 905,000 sq.m. and worth 7 billion Swiss Francs. 62% of PSP’s properties are offices. 68% of PSP’s portfolio is in Geneva and Zurich. PSP has an international credit rating of A- by Fitch and A3 by Moody’s. Alony-Hetz is PSP’s largest.
AH Boston, USA
Alony-Hetz has 55% of the equity interests and 50% of the control interests in three companies that own office buildings in the Boston CBD and in East Cambridge with 80,000-sq.m leased space worth $648 million. The Company’s partner in Boston is Oxford Properties, considered one of the largest rental real estate investors in Boston.
Energix Renewable Energy Ltd. – Israel and Poland (Alony-Hetz holds 66.7%)
A public Israeli company, engaged in initiating and constructing electricity producing facilities and selling electricity in Israel, United States and in Poland produced with clean energies using photovoltaic and wind technologies. As of December 2017 Energix has generating systems with installed capacity of 168 MW. In 2017 Energix won 2 tariff tenders to build and operate photovoltaic systems with total capacity of 152 MWp (110MW) in Israel. In addition, the company has a backlog initiatives of photovoltaic and wind projects in Israel, producing about 500 MW and hundreds of MW in the United states and Poland. The company’s market value is NIS 1.3 billion and by December 2017 its equity was NIS 684 million.
Brockton Capital – Britain
Alony-Hetz invests in Brockton Capital, a real estate investment funds group, investing in a wide range of real estate, mainly in London.
Alony-Hetz contributes and invests in Israeli community activities focused on education.